Thunderful Announces Second Wave Of Mass Layoffs This Year

As a gaming enthusiast who has seen the industry evolve over the past few decades, I find it disheartening to witness such turbulence within companies like Thunderful. Having followed their journey closely, it’s unfortunate to see them undergoing another round of restructuring, which could potentially affect up to 100 employees.

Thunderful is making changes again, this being the second reorganization in just under a year. It’s possible that as many as 100 employees may be affected and lose their positions within the organization.

The announcement came on Thursday via the company’s website.

Thunderful stated that their latest initiative aligns with the budget-friendly strategies implemented earlier in the year, along with the sale of the company’s distribution sector to address accumulated debt. Despite substantial cost reductions this year, income objectives have not been attained and the Group continues to face issues with unfavorable cash flow.

This restructuring plan involves shifting the company’s focus towards publishing games developed by third parties. Thunderful explains that this move will help lower fixed costs, provide more flexibility, and facilitate quicker, more diverse game releases. They aim to achieve this by effectively using outside talent and resources, while maintaining some in-house development capabilities.

Martin Walfisz, Thunderful’s CEO, expressed regret at needing to announce another reorganization for Thunderful within just a year. However, he emphasized that this step was necessary to secure the company’s long-term durability and robustness.

Approximately 80-100 individuals, both within and outside of Sweden, are expected to face job losses as part of these changes. This includes those in managerial and administrative roles who may also be affected by the downsizing.

Thunderful projects one-time expenses between $22.8 million and $27.4 million due to separation costs following union negotiations. Nevertheless, they believe these job reductions will ultimately boost their total cash flow by an estimated $73 million to $82.2 million.

By the year 2024, over 160 businesses reported a total of approximately 14,000 positions eliminated through layoffs.

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